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Sunday, 18 November 2018

Editorial: Oil Revival to Boost Economic Recovery

Last Saturday, South Sudan resumed pumping 20,000 barrels per day (bpd) of crude oil from the Toma South oilfield

, where production had been suspended since 2013 due to civil war.
Once maintenance work on five previously suspended oil fields is completed, it is expected to increase production to 80,000 bpd with the country's oil output reaching 210,000 bpd by the end of the year.
In June this year, Khartoum and Juba agreed to repair oil infrastructure facilities destroyed by the war within three months in order to boost production and said a joint force would be established to protect the oilfields from attacks by rebel forces.
However, the Sudanese government did not utilize the revenues of the oil production during the pre-secession era in a proper manner.
At that era the government did not put in its consideration saving part of the oil revenues to be used in the rainy days.
To be more accurate there was mismanagement in running the oil revenues dossier as revealed by the Auditor General’s report which affirmed the disappearance of US$960 million dollars from the government accounts during the period 1996 -2012.
It goes without saying that the Sudanese government has achieved a great success in the resumption of South Sudan oil pumping through the Sudanese pipelines after five years of suspension.
Sudan’s share will be US$4 as transit fees against each barrel of oil besides US$1.6 for treating the crude.
It is true that it is not a big money but despite that it should be monitoring and utilized to the maximum in boosting the economic recovery.
What is needed in the upcoming stage after the resumption of oil pumping is strict control on the revenues provided from transit fees and treating the crude through well prepared system to avoid the previous mismanagement.
Sudan is in dire need to any dollar to avoid economic collapse.
We urge the concerned institutions being in the Ministry of Oil or the Ministry of Finance to deal in transparency with this dossier and to reveal the facts and figures for the public to regain the confidence of the people.